October 31, 2000
RE:
Amendments to Surplus Line Broker Requirements Rhode Island General Law §27-3-38 and §27-3-39
Dear Surplus Line Broker: Please be advised that effective July 13, 2000, the Rhode Island General Assembly passed Senate Bills S 2631 and S 2781 as amended. Such legislation amended Rhode Island General Law §27-3, which is the statute that governs the placement of surplus line business. You may visit the Secretary of State’s website at www.state.ri.us (click on Office of Public Information) to access Senate Bills. The amendments to §27-3 are outlined below. Please see above referenced Senate bills for detailed language as this is only an overview. S 2631: 1. §27-3-38c- Licensees shall also make his/her records available to the tax administrator. 2. §27-3-38e- There was a minor change in the NOTICE section of the affidavit by broker forms. The word “eligible” has been changed to “approved”. 3. §27-3-39c- Surplus line brokers of a licensed firm may meet the bond requirements by filing a bond in the name of a licensed firm. Questions relating to bond requirements should be addressed to Alicia Mildner, Licensing Aide,at 401-222-2223. S 2781 as amended: 1. §27-3-38b- For any policy renewed, continued or extended by the same insurer, no affidavit shall be required to be filed by the licensee with the commissioner, for such policy of insurance or coverage under such procured by the licensee, for which the licensee has previously filed an affidavit. Prior to renewing, continuing or extending any policy, the licensed surplus line broker must confirm that the insurer is on the insurance commissioner’s list of approved surplus line insurers in this state. 2. §27-3-38e-The NOTICE requirements were amended to change the word “eligible” to “approved”. (same as 3 above)
Page 2 Amendments to §27-3-38 and §27-3-39
As noted above, for any policy that is renewed, continued or extended by the same insurer, no affidavit form is required if the licensee previously filed an affidavit by broker form with the insurance commissioner. However, prior to renewing, continuing or extending such coverage, the licensee must confirm that the insurer is on the insurance commissioner’s list of approved surplus line insurers in this state. Questions relating to approved status should be addressed to Matthew DiMaio, Senior Licensing Insurance Examiner, at 401-222-2223. Based upon recent changes to R.I.G.L. §27-3-38, the Department has amended and updated the affidavit by broker form (Form #311) accordingly, a copy of which is enclosed. Please make copies of the enclosed form for future filings. It should be noted that the law mandates the filing of affidavit forms with this Department within 30 days after the policies have been procured. It should be clearly understood that effective January 2, 2001, all surplus line placements must be submitted on Form #311; otherwise, the Department will return any affidavit by broker filing that is not submitted on the required form. If you have any questions, please feel free to contact this Division.
Very truly yours,
(Mrs) Paula M. Pallozzi Chief Property & Casualty Rate Analyst
See: (Affidavit by Broker Form #311 as amended 10/2000)